Grayson Coleman May 5 2009 YouTube Video Clip
Fred
Inquisition Date - May 5, 2009
Grayson references September 2007's Federal Reserve's balance sheet
several times.
(I don't have a spell checker on this computer, sorry for any
misspellings)
After I saw the video I realized there are a few unknowns here -
1. Just because Grayson said (Grayson03) there was a trillion dollar
plus expansion in the Federal Reserve's balance sheet, does that mean
it is true - or that if it is true that it was not legitimate? (do not
forget that Grayson was also the guy that said the Republicans health
care plan was for us to not get Sick or if we get sick to die quickly)
2. (Grayson07) The only bloomberg report I could find that this video
related to was http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aspN..hVXJC4
- but the only mention of any amount even close to the nine trillion
that Grayson mentioned were these two quotes - Securitization
accelerated in the mid-1990s. The total amount of mortgage-backed
securities issued almost tripled between 1996 and 2007, to $7.27
trillion, according to the Securities Industry and Financial Markets
Association, or SIFMA. - and - Outstanding credit-default swaps,
derivative contracts used to hedge or speculate on a company's debt,
would grow to $62 trillion from $631 billion in 2001. - but are either
of these Coleman's responsibility?
Also some of my opinions -
After reading Grayson02 - Is it Coleman's job to investigate the
Federal Reserve's role when they DON'T bail out a company, like Lehman
Brothers?
After reading Coleman03 - She answers Grayson03 question saying they
are in beginning process, before an investigation, called a review.
After reading Grayson04 - She just told Grayson that she was in the
review stage of the process and he said he understood that yet he asks
her if she's reached any conclusions.
After reading Grayson05 - There is nothing wrong with asking her if
she knows who recieved the money but when she answers him (Coleman05)
explaining again she is in the review stage when he cuts her off and
repeats his question (Grayson06)
After reading Grayson07 - Grayson14 These seem to be just a repeat of
Grayson asking more questions of things that may or may not be true or
things that may or may not be legitimate with Coleman answering him
that she still is in the review stage at this point.
>From all the comments about this video it is clear that most people
that comment on it seem to take Coleman's response to Grayson's
questions as some form of guilt when it sounds to me like Grayson is
ignoring her response that she is in the beginning review phase and
does not have much information at this point - Read the transcript and
decide for yourself -
Grayson01 - Thank you very much Mr. Chairman. Inspector Coleman you
are the Inspector General for the Federal Reserve, right? OK.
Coleman01 - That's correct.
Grayson02 - Have you done any investigations concerning the Federal
Reserve's role in deciding not to save Lehman Brothers which led
shockwaves that went through the entire financial system?
Coleman02 - In that particular area, you know, I don't generally
comment on specific investigations, but we do not currently have an
investigation in that particular area.
Grayson03 - Alright, what about the one trillion dollars plus in
expansion of the Federal Reserve's balance sheet since last September,
have you conducted any investigations regarding that?
Coleman03 - We, right now we have a, it's called, we call it a review,
and, so that the term investigation may have different conotations.
So we actually conducting a fairly high level review of the various
lending facilities collectively which would include, you know, the
TALF, a variety of the different programs that are in process, so we
are looking at them at fairly high level to identify risk.
Grayson04 - Well, I understand that, but we're talking about events
that started unfolding 8 months ago, have you reached any conclusions
about the Fed expanding it's balance sheet by over a trillion dollars
since last September?
Coleman04 - We have not yet reached any conclusions.
Grayson05 - Do you know who recieved that money?
Coleman05 - For the, we are in the process now in doing our review,
and
Grayson06 - Right, but you are the Inspector General, my question for
you specifically, is do you know who recieved that one trillion
dollars plus that the Fed extended and put on it's balance sheets
since last September, do you know the identity of the recipients?
Coleman06 - I do not know, we have not looked at that specific area,
at this particular point, on those reviews.
Grayson07 - What about Bloomberg's report that there are trillions of
dollars in off balance sheets transactions that the Federal Reserve
has entered into since last September, are you familiar with those off
balance sheets transactions?
Coleman07 - You know, I think it may be important, at this point, too,
just to bring up a certain aspect of our jurisdiction, and just to
clarify, perhaps, some of my earlier comments. We are the Inspector
General for the Board of Governors, and we have direct oversight over
Board programs and operations, and are also able to look at Board
delegated function to the reserve banks, as well as, it's, the Boards
oversight and supervision of the reserve banks. We do not have
jurisdiction to directly go out and audit reserve bank activities
specifically. Never the less, in our lending facility project, for
example, we are looking at the Board's oversight over the program,
and, to the extent that, it extends out to the Federal Reserve Bank of
New York.
Grayson08 - Well, I have a copy of the Inspector General Act, here in
front of me, and it says, among other things, that it is your
responsibility to conduct and supervise audits and investigations
relating to the programs and operations of your agency.
Coleman08 - That's correct.
Grayson09 - So I'm asking you if your agency has, in fact, according
to Bloomberg, extended nine trillion dollars in credit, which, by the
way, works out to thirty thousand dollars for every man woman and
child in this country, I'd like to know, if you're not responsible for
investigating that, who is?
Coleman09 - No, we actually, we have responsibility for, the Federal
Reserve's programs and operations, audits, to conduct audits and
investigations in that area. In terms of who's responsible for
investigating, would you mind repeating the question one more time.
Grayson10 - What have you done to investigate the off balance sheet
transactions, conducted by the Federal Reserve, which according to
Bloomberg, now total nine trillion dollars in the last eight months.
Coleman10 - I, I'll have to look specifically at that Bloomberg
article, I, I'm not, I don't know if I have actually seen that
particular one.
Grayson11 - That's not the point. The question is, have you done any
investigation or auditing of off balance sheet transactions conducted
by the Federal Reserve?
Coleman11 - At this point, we're at the very, we're conducting our
lending facility project at a fairly high level and have not gotten to
a specific level of detail to really be in a position to respond to
your question.
Grayson12 - Have you conducted any investigation or auditing of the
losses that the Federal Reserve has experienced, on it's lending,
since last September.
Coleman12 - We're still in the process of conducting that review,
until we actually, you know, go out and gather the information, I'm
not in a position to really respond to the specific question.
Grayson13 - So are you telling me that nobody at the Federal Reserve
is keeping track, on a regular basis, of the losses that it occurs
that is now a two trillion dollar portfolio.
Coleman13 - I don't know if, you're telling me that there, you're
mentioning that there's losses, I'm just saying that we're not, until
we actually look at the program and have the information, we're not in
a position to say whether they're losses or to respond in any other
way to that, to that particular...
Grayson14 - Mr. Chairman, my time is up, but I have to tell you,
honestly, I am shocked to find out that nobody at the Federal Reserve,
including the Inspector General, is keeping track of this.